Systems and methods are provided for receiving a request to display a type of product. Thereafter, a substitute product for the product is selected from a plurality of substitute products. The selection is based on expected revenue from display of the selected substitute product. The product is then...http://www.google.com/patents/US7340419?utm_source=gb-gplus-sharePatent US7340419 - Method and apparatus for product display

Systems and methods are provided for receiving a request to display a type of product. Thereafter, a substitute product for the product is selected from a plurality of substitute products. The selection is based on expected revenue from display of the selected substitute product. The product is then displayed to a customer.

Images(10)

Claims(13)

1. A method comprising:

receiving from a customer a selection of a product category;

determining a product associated with the selected product category,

in which the determined product is available for sale to the customer;

selecting a substitute product for the determined product from a plurality of substitute products for the determined product,

in which each substitute product of the plurality of substitute products is associated with a respective payment that a respective manufacturer has agreed to pay for each time the substitute product is displayed,

in which selecting the substitute product is based on the respective payment for each time the substitute product is displayed; and

transmitting a signal to display the selected substitute product.

2. The method of claim 1, in which transmitting a signal to display the selected substitute product comprises:

transmitting a signal to display the selected substitute product and the determined product to the customer.

3. The method of claim 1, in which transmitting a signal to display the selected substitute product comprises:

transmitting a signal to display the selected substitute product adjacent to the determined product.

4. The method of claim 1, further comprising:

transmitting a signal to display the determined product to the customer.

5. The method of claim 1, further comprising:

charging the respective manufacturer the respective payment for the displaying of the selected substitute product.

6. The method of claim 1, in which each substitute product of the plurality of substitute products is associated with a respective payment that a respective manufacturer has agreed to pay for each time the substitute product is purchased.

7. The method of claim 6, in which selecting the substitute product is based on the respective payment for each time the substitute product is displayed and the respective payment for each time the substitute product is purchased.

8. The method of claim 1, in which each substitute product of the plurality of substitute products is associated with a respective substitution success rate.

9. The method of claim 8, in which selecting the substitute product is based on the respective payment for each time the substitute product is displayed and the respective substitution success rate.

10. The method of claim 8, further comprising:

determining whether the customer indicated the selected substitute product for purchase; and

updating the respective substitution success rate for the selected substitute product based on whether the customer indicated the selected substitute product for purchase.

11. A computer readable medium storing instructions configured to direct a processor to perform the method of claim 1.

12. An apparatus comprising:

a processor; and

the computer readable medium of claim 11 in communication with the processor.

13. A system comprising:

a controller comprising:

a processor; and

a computer readable medium in communication with the processor, the computer readable medium storing instructions configured to direct the processor to perform the method of claim 1; and

a terminal in communication with the controller, the terminal comprising:

a user interface configured to display an indication of the selected substitute product.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS

This application claims the benefit of U.S. Provisional Patent Application Ser. No. 60/276,193, filed Mar. 15, 2001, entitled “SYSTEMS AND METHODS FOR EFFECTUATING PROXIMATE PRODUCT PLACEMENT BASED ON PRODUCT SUBSTITUTABILITY”, the content of which is incorporated by reference herein for all purposes.

This application is related to the following co-pending U.S. Patent Applications:

U.S. patent application Ser. No. 08/889503, entitled “SYSTEMS AND METHODS WHEREIN A BUYER PURCHASES A PRODUCT AT A FIRST PRICE AND ACQUIRES THE PRODUCT FROM A MERCHANT THAT OFFERS THE PRODUCT FOR SALE AT A SECOND PRICE”, filed Jul. 8, 1997 and issued as U.S. Pat. No. 6,249,772 on Jun. 19, 2001;

U.S. patent application Ser. No. 09/591594, entitled “SYSTEMS AND METHODS WHEREIN A BUYER PURCHASES A PRODUCT AT A FIRST PRICE AND PHYSICALLY ACQUIRES THE PRODUCT AT A LOCATION ASSOCIATED WITH A MERCHANT THAT OFFERS THE PRODUCT FOR SALE AT A SECOND PRICE”, filed Jun. 29, 2000 and issued as U.S. Pat. No. 7,107,228 on Sep. 12, 2006;

U.S. patent application Ser. No. 09/348566, entitled “SETTLEMENT SYSTEMS AND METHODS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRODUCT PURCHASED USING A COMMUNICATION NETWORK”, filed Jul. 7, 1999 and issued as U.S. Pat. No. 7,039,603 on May 2, 2006;

U.S. patent application Ser. No. 09/388723, entitled “REDEMPTION SYSTEMS AND METHODS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRODUCT PURCHASED USING A COMMUNICATION NETWORK”, filed Sep. 2, 1999 and now abandoned;

U.S. patent application Ser. No. 09/337906, entitled “PURCHASING SYSTEMS AND METHODS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRODUCT PURCHASED USING A COMMUNICATION NETWORK”, filed Jun. 22, 1999 and issued as U.S. Pat. No. 6,754,636 on Jun. 22, 2204;

U.S. patent application Ser. No. 09/370291, entitled “SUPPLEMENTAL OFFERS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRIMARY PRODUCT PURCHASED THROUGH A PURCHASING SYSTEM”, filed Aug. 9, 1999 and now abandoned;

U.S. patent application Ser. No. 09/412930, entitled “METHODS AND APPARATUS WHEREIN A BUYER ARRANGES TO PURCHASE A FIRST PRODUCT USING A COMMUNICATION NETWORK AND SUBSEQUENTLY TAKES POSSESSION OF A SUBSTITUTE PRODUCT AT A RETAILER”, filed Oct. 5, 1999 and issued as U.S. Pat. No. 6,970,837 on Nov. 29. 2005; and

The content of each of the above is incorporated by reference herein for all purposes.

BACKGROUND OF THE INVENTION

Customers may be influenced to/prompted to make certain purchases based on the viewing of a product, even if that customer did not intend a priori to purchase that product, or did not intend to purchase that particular brand of the product. For example, products that are displayed at the ends of aisles in supermarkets are typically subject to increased retail traffic. Accordingly, such products generally receive higher sales. However, not all products can be displayed in such a manner, due to, e.g., space limitations.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1A is a block diagram of an embodiment of a system consistent with the present invention;

FIG. 1B is a block diagram of another embodiment of a system consistent with the present invention;

FIG. 1C is a block diagram of another embodiment of a system consistent with the present invention;

FIG. 2 is a block diagram of one embodiment of a controller;

FIG. 3 is a table illustrating an exemplary data structure of a customer database;

FIG. 4 is a table illustrating an exemplary data structure of a product database;

FIG. 5 is a table illustrating an exemplary data structure of a product slotting database;

FIG. 6 is a table illustrating an exemplary data structure of an actual transaction database;

FIG. 7 is a flow diagram illustrating an exemplary process according to an embodiment of the present invention;

DETAILED DESCRIPTION OF THE INVENTION

Applicants have recognized that, in some situations, it can be advantageous to display products to customers who may be willing to purchase those products.

Applicants have also recognized that, in some situations, it can be advantageous to display products to customers in exchange for money received from a seller of that product, such as a manufacturer or wholesaler.

Methods and systems for slotting products into categories based on substitutability of the related products and revenue management techniques are disclosed. For example, in accordance with an embodiment of the invention, a customer may indicate to the system that the customer is interested in purchasing in a general category (e.g. soft drinks). Such a customer may not have a specific brand in mind and may be willing to purchase from a number of different brands. “Slots” in the soft drink category may be sold, even slots for products that are not typically included in the soft drink category. For example, bottled water may be slotted next to typical carbonated soft drink beverages. The substitute products could be slotted into substitution slots while the customer is assembling their basket or in substitution slots that appear at the time of checkout.

The system may determine which substitute products to slot using a rules based system. One possible factor affecting selection of the substitute product to display is how much the manufacturer would pay to place their product in the substitute slot. The manufacturer may pay every time their product is displayed and/or every time a customer selects their product from the substitute slot. It would be advantageous to place the product from the manufacturer who is willing to pay the system the most for that slot.

The system must also take into consideration how often the customer selects the product since the manufacturer may be willing to pay every time the customer purchases their product when it is in the substitution slot. For example, if an expected rate of substitution is determinable, the expected revenue from substitution may be determined. Consequently, the expected revenue from slotting particular products may be determined.

The disclosed systems and methods may benefit manufacturers by allowing them to build an expanded customer base, by drawing customers from a broader range of comparable products. The disclosed systems and methods may also benefit retailers and others that partner with manufacturers to sell products as described herein.

According to an embodiment of the present invention, a product may be priced by way of receiving, from a customer, information defining one or more group(s) of comparable products the consumer is willing to purchase from, the information further including a price the customer is willing to pay. The buyer-defined price may be provided in exchange for individual products from within the group, or for the group itself.

For example, the on-line pricing system may transmit a redemption code to the customer device, entitling the customer to take delivery of one or more product(s) from a retailer local to the customer.

Upon taking delivery of the previously priced product(s), the customer device may communicate information related to the product(s) (e.g. one or more product identifier(s)) to the applicable retailer system. According to some embodiments of the present invention, rather than providing information related to the specific products having been taken delivery of, the customer or customer device may simply provide the previously received redemption code to the retailer system.

A detailed discussion of manners in which a redemption code may be assigned, issued and redeemed, as well as other methods related to the process of establishing a price for products and then acquiring products from a retailer, is provided in the following:

U.S. patent application Ser. No. 08/889503, entitled “SYSTEMS AND METHODS WHEREIN A BUYER PURCHASES A PRODUCT AT A FIRST PRICE AND ACQUIRES THE PRODUCT FROM A MERCHANT THAT OFFERS THE PRODUCT FOR SALE AT A SECOND PRICE”, filed Jul. 8, 1997 and issued as U.S. Pat. No. 6,249,772 on Jun. 19, 2001;

U.S. patent application Ser. No. 09/591594, entitled “SYSTEMS AND METHODS WHEREIN A BUYER PURCHASES A PRODUCT AT A FIRST PRICE AND PHYSICALLY ACQUIRES THE PRODUCT AT A LOCATION ASSOCIATED WITH A MERCHANT THAT OFFERS THE PRODUCT FOR SALE AT A SECOND PRICE”, filed Jun. 29, 2000 and issued as U.S. Pat. No. 7,107,228 on Sep. 12, 2006;

U.S. patent application Ser. No. 09/348566, entitled “SETTLEMENT SYSTEMS AND METHODS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRODUCT PURCHASED USING A COMMUNICATION NETWORK”, filed Jul. 7, 1999 and issued as U.S. Pat. No. 7,039,603 on May 2, 2006;

U.S. patent application Ser. No. 09/388723, entitled “REDEMPTION SYSTEMS AND METHODS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRODUCT PURCHASED USING A COMMUNICATION NETWORK”, filed Sep. 2, 1999 and now abandoned;

U.S. patent application Ser. No. 09/337906, entitled “PURCHASING SYSTEMS AND METHODS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRODUCT PURCHASED USING A COMMUNICATION NETWORK”, filed Jun. 22, 1999 and issued as U.S. Pat. No. 6,754,636 on Jun. 22, 2004;

U.S. patent application Ser. No. 09/370291, entitled “SUPPLEMENTAL OFFERS WHEREIN A BUYER TAKES POSSESSION AT A RETAILER OF A PRIMARY PRODUCT PURCHASED THROUGH A PURCHASING SYSTEM”, filed Aug. 9, 1999 and now abandoned;

U.S. patent application Ser. No. 09/412930, entitled “METHODS AND APPARATUS WHEREIN A BUYER ARRANGES TO PURCHASE A FIRST PRODUCT USING A COMMUNICATION NETWORK AND SUBSEQUENTLY TAKES POSSESSION OF A SUBSTITUTE PRODUCT AT A RETAILER”, filed Oct. 5, 1999 and issued as U.S. Pat. No. 6,970,837 on Nov. 29, 2005; and

According to another embodiment of the invention, products may be priced by way of receiving, from a consumer, information defining one or more types or categories of comparable products the consumer is willing to purchase from.

These and other embodiments are described herein.

System

Referring now to FIG. 1, an apparatus 100 according to an embodiment of the present invention includes a controller 110 that is in communication with one or more retailers 115 via a network such as the Internet (wired and/or wirelessly), via another network protocol, or via other means for communication as would be understood by those of ordinary skill in the art. Although only one retailer 115 is depicted in FIG. 1A, any number of retailers may be in communication with the controller 110.

The controller 110 also communicates with a customer 105 via a network such as the Internet (wired and/or wirelessly), via another network protocol, or via other means for communication as would be understood by those of ordinary skill in the art. Although only one customer 105 is depicted in FIG. 1A, any number of customers may be in communication with the controller 110.

The customer 105 and/or retailer 115 may comprise computers, such as those based on the Intel® Pentium® processor, that are adapted to communicate with the controller 110.

Communication with the controller 110 may be direct or indirect. For example, communication may be via the Internet through a Web site maintained by controller 110 on a remote server or via an on-line data network including commercial on-line service providers, bulletin board systems and the like. In some embodiments, the customer 105 and retailer 115 may communicate with controller 110 over radio frequency (“RF”), infrared (“IR”), cable TV, satellite links and the like, including combinations thereof.

Those skilled in the art will understand that devices in communication with each other need not be continually transmitting to each other. On the contrary, such devices need only transmit to each other as necessary, and may actually refrain from exchanging data most of the time. For example, a device in communication with another device via the Internet may not transmit data to the other device for weeks at a time.

The controller 110 may function as a “Web server” that generates Web pages (documents on the Web that typically include an HTML file and associated graphics and script files) that may be accessed via the Web and allows communication with the controller 110 in a manner known in the art. Those of skill in the art will understand that there are a variety of well-known ways for creating and operating Web pages, and accordingly a detailed description of such known processes is omitted here for clarity.

Any or all of the customer 105, the controller 110 and retailer 115 may comprise, e.g., a conventional personal computer, a portable type of computer, such as a laptop computer, a palm-top computer, a hand-held computer, or a Personal Digital Assistant (PDA), or combinations thereof.

Referring to FIG. 1B, an apparatus 130 according to an embodiment of the present invention includes a controller 140 that is in communication with one or more customer terminals 135, one or more manufacturers 142, one or more sponsors 145, and one or more credit card clearing houses 152. Communication with each may be via a network such as the Internet (wired and/or wirelessly), via another network protocol, or via other means for communication as would be understood by those of ordinary skill in the art. It is also possible that controller 140 will receive information directly or indirectly from a POS terminal 150, such as a cash register (e.g., mechanical or electronic). The POS terminal may include a bar code scanner, keypad, and/or any other input device for receiving information related to one or more products being acquired. The POS terminal may also comprise or include means for receiving the previously assigned redemption code, along with information related to the specific products having been taken delivery of (e.g. coded information such as bar codes, SKUs or other product descriptor(s)).

A customer 105 communicates with the customer terminal 135, which may include a web browser or other known user interface means. The customer 105 also communicates with the POS terminal 150. In typical situations, the customer 105 will not communicate with the customer terminal 135 and the POS terminal 150 simultaneously.

As is known in the art, the credit card clearinghouse 152 communicates with one or more banks 155 as well as with the one or more POS terminals 150 to effectuate the processing of transactions made using a credit card account. For example, the credit card clearinghouse 152 may receive from the POS terminal a request to authorize a purchase for which a credit card account is to be charged for payment. The credit card clearinghouse 152 in turn responds to the request, typically to either authorize or deny the request. Via communication with the credit card clearinghouse 152, the controller 140 may likewise effectuate processing of credit card transactions via its communication with the credit card clearinghouse 152.

The manufacturers 142 can communicate with the controller 140 to, e.g., communicate desired prices, promotions and other product and pricing information to controller. It will be understood by those of ordinary skill in the art that, in addition to manufacturers, other product suppliers or sellers such as retailers, wholesalers and the like may communicate in a like manner with the controller 140.

The sponsors 145 include merchants willing to provide a benefit to the controller, manufacturer, customer, retailer and/or other parties in exchange for, e.g., advertising to the customer, acquisition of the customer as a client of the sponsor, other interaction with the customer.

Referring to FIG. 1C, an apparatus 160 according to an embodiment of the present invention includes a controller 165 that is in communication with one or more customer terminals 135, one or more manufacturers 142, one or more sponsors 145, and one or more credit card clearing houses 152. Communication with each may be via a network such as the Internet (wired and/or wirelessly), via another network protocol, or via other means for communication as would be understood by those of ordinary skill in the art.

It is also possible that controller 165 will receive information directly or indirectly from a POS terminal 170, via a POS peripheral 175 and a peripheral server 180. The POS terminal 170 may be a cash register (e.g., mechanical or electronic). The POS peripheral 175 may be a device that receives information from the POS terminal 170, such as a coupon printer of the type manufactured by Catalina Marketing Corporation. The peripheral server 180 may be in communication with a plurality of such POS peripherals, thereby allowing the peripheral server 180 to receive information regarding a plurality of transactions at a plurality of retailers.

The POS peripheral 175 may be operable to access a database (e.g., of peripheral server 180) to issue custom coupons, offers, incentives and messages based upon the transaction. The peripheral server 180 may thus monitor shopper purchase history over time by associating purchase behavior with customer identifiers, such as loyalty card or check cashing card numbers. Further, this information may be analyzed, e.g., to identify those customers which a particular retailer should find most desirable. Based upon retailer objectives, the peripheral server 180 may direct the appropriate POS peripheral 175 to issue customized messages to specific shoppers that are relevant to their shopping behaviors.

Information received by the POS peripheral 175 from the POS terminal 170 may include transaction data such as products purchased, prices of products purchased, coupons redeemed, and time and date of transaction.

A customer 105 communicates with the customer terminal 135, which may include a web browser or other known user interface means. The customer 105 also communicates with the POS terminal 170. In typical situations, the customer 105 will not communicate with the customer terminal 135 and the POS terminal 150 simultaneously.

As is known in the art, the credit card clearinghouse 152 communicates with one or more banks 155 as well as with the one or more POS terminals 150 to effectuate the processing of transactions made using a credit card account. For example, the credit card clearinghouse 152 may receive from the POS terminal a request to authorize a purchase for which a credit card account is to be charged for payment. The credit card clearinghouse 152 in turn responds to the request, typically to either authorize or deny the request. Via communication with the credit card clearinghouse 152, the controller 165 may likewise effectuate processing of credit card transactions via its communication with the credit card clearinghouse 152.

The manufacturers 142 can communicate with the controller 165 to, e.g., communicate desired prices, promotions and other product and pricing information to controller. It will be understood by those of ordinary skill in the art that, in addition to manufacturers, other product suppliers or sellers such as retailers, wholesalers and the like may communicate in a like manner with the controller 165.

The sponsors 145 include merchants willing to provide a benefit to the controller, manufacturer, customer, retailer and/or other parties in exchange for, e.g., advertising to the customer, acquisition of the customer as a client of the sponsor, other interaction with the customer.

In addition to the description above, other means for the controller to receive information regarding a set of products for which a buyer price is established online, and a corresponding set of products picked up at the retailer.

Devices

FIG. 2 illustrates an embodiment 200 of a controller. The controller may be implemented as a system controller, a dedicated hardware circuit, an appropriately programmed general purpose computer, or any other equivalent electronic, mechanical or electro-mechanical device.

The controller 200 comprises a processor 205, such as one or more Intel® Pentium® processors. As is well known in the art, the processor 205 may be in communication with a communication port (not shown in FIG. 2) or other means for facilitating communication between the processor 205 and other devices.

The processor 205 is also in communication with a data storage device 210. The data storage device 210 comprises an appropriate combination of magnetic, optical and/or semiconductor memory, and may include, for example, Random Access Memory (RAM), Read-Only Memory (ROM), a compact disc and/or a hard disk. The processor 205 and the storage device 210 may each be, for example: (i) located entirely within a single computer or other computing device; or (ii) connected to each other by a remote communication medium, such as a serial port cable, telephone line or radio frequency transceiver or other wired or wireless media. In one embodiment, the controller may comprise one or more computers that are connected to a remote server computer for maintaining databases.

The data storage device 210 stores a program 215 for controlling the processor 205. The processor 205 performs instructions of the program 215, and thereby operates in accordance with the embodiments of the present invention, and particularly in accordance with the methods described in detail herein. The program 215 may be stored in a compressed, uncompiled and/or encrypted format. The program 215 furthermore includes program elements that may be necessary, such as an operating system, a database management system and “device drivers” for allowing the processor 205 to interface with computer peripheral devices. Appropriate program elements are well known to those of ordinary skill in the art, and need not be described in detail herein.

According to an embodiment of the present invention, the instructions of the program 215 may be read into a main memory from another computer-readable medium, such from a ROM to RAM. Execution of sequences of the instructions in program 215 causes processor 205 to perform the process steps described herein. In alternative embodiments, hard-wired circuitry may be used in place of, or in combination with, software instructions for implementation of the processes of the present invention. Thus, embodiments of the present invention are not limited to any specific combination of hardware and software.

The storage device 210 also stores (i) a customer database 220, (ii) a product database 225, (iii) a product slotting database 230, and (iv) an actual transaction database 235. The databases are described in detail below and depicted with exemplary entries in the accompanying figures. As will be understood by those skilled in the art, the schematic illustrations and accompanying descriptions of the databases presented herein are exemplary arrangements for stored representations of information. Many other arrangements may be employed besides those suggested by the tables shown. Similarly, the illustrated entries of the databases represent exemplary information only; those skilled in the art will understand that the number and content of the entries can be different from those illustrated herein.

Databases

FIG. 3 is a tabular representation of an embodiment 300 of the customer database. The tabular representation of the customer database includes a number of example records or entries, including the entry 330, each of which defines a customer. Those skilled in the art will understand that the customer database may include any number of entries. The tabular representation of customer database also defines fields for each of the entries or records. The fields specify: (i) a customer identifier 305 that uniquely identifies the customer; (ii) a customer name 310; (iii) contact information 315 of the customer; and (iv) payment information 320 of the customer, such as credit card or debit card account information which may be used to render payment on behalf of the customer.

The customer identifier, as well as other identifiers described herein, may be generated or assigned by the controller, or may be established by the customer and provided to the controller by way of a customer terminal or other appropriate device. For example, the customer identifier may comprise a numeric code that is assigned to the corresponding customer by the controller. Alternatively, the customer identifier may comprise a user name and/or password that may be generated by a customer terminal and subsequently provided to the controller.

The data stored in the contact information field may comprise any of (i) an electronic mail (e-mail) address, (ii) a postal address, (iii) telephone number, and (iv) a numeric IP address of the customer.

FIG. 4 is a tabular representation of an embodiment 400 of the product database. The tabular representation of the product database includes a number of example records or entries, including the entry 430, each of which defines a product offered for sale. Those skilled in the art will understand that the product database may include any number of entries, and that the information stored thereby may be specific to particular retailers. For example, the entry 430 may indicate a product offered for sale by, e.g., only a certain chain of stores, but not by others. Accordingly, the entries may optionally be associated with a retailer or set of retailers.

The tabular representation of product database also defines fields for each of the entries or records. The fields specify: (i) a product identifier 405 that uniquely identifies the product, such as an SKU or other appropriate identifier; (ii) a product description 410; and (iii) applicable rebates 415 and 420. Although two applicable rebates are illustrated in FIG. 4, any number of rebates may be used, and the number of rebates may differ among products in any manner desired.

FIG. 5 is a tabular representation of an embodiment 500 of the product slotting database. The tabular representation of the product slotting database includes a number of example records or entries, including the entries 540 and 545, each of which defines a substitute product, which may be displayed when a particular product category is requested to be displayed. Those skilled in the art will understand that the product slotting database may include any number of entries.

The tabular representation of product slotting database also defines fields for each of the entries or records. The fields specify: (i) a requested product category 505 that identifies the product or product category requested by the customer; (ii) an identifier 510 that identifies a substitute product to be displayed; (iii) a payment 515 which the manufacturer or other seller has agreed to pay upon display of the substitute product; (iv) a payment 520 which the manufacturer or other seller has agreed to pay upon sale to the customer of the substitute product; (v) a success rate 525 of such “substitution” of the substitute product for another (e.g., requested product or category); and (vi) an expected revenue 530 to be received per substitution, as determined by the expected revenue from the combination of display and substitution.

An expected revenue per substitution may be calculated according to the following equation:
ERS=Manufacturer Payment per Display of Product+(Manufacturer Payment per Customer Substitute of Product)*(Substitution Success Rate)

FIG. 6 is a tabular representation of a record 600 of an embodiment of the actual transaction database. The actual transaction database would typically contain a plurality of such records, each such record defining an actual transaction of a customer with a retailer. The tabular representation of the record 600 includes a number of example records or entries, including the entries 625 and 630, each of which defines a product and corresponding quantity acquired during the transaction. Those skilled in the art will understand that the record may include any number of entries. The tabular representation of customer database also defines fields for each of the entries or records.

Process Description

Referring to FIG. 7, a flow chart 700 represents an embodiment of the present invention that may be performed by the controller. The particular arrangement of elements in the flow chart of FIG. 7, as well as the other flow charts discussed herein, is not meant to imply a fixed order to the steps; embodiments of the present invention can be practiced in any order that is practicable.

At step 705, the controller receives a product category selection from a customer, typically via a Web browser at a customer terminal. For example, a customer may log on to the controller's Web Site and request to see products in the “Beverage/Soft Drink” category.

At step 710, the controller determines a substitute product based on (i) the selected product category and optionally (ii) the greatest expected revenue per substitution. For example, the controller may access the product database and product slotting database to determine, based on the requested product category and optionally the expected revenue per substitution, which product to display in the substitute product category. In the example above, the customer had requested the “Beverage/Soft Drink” category, so the controller system would determine from the product slotting database which products are appropriate substitutes for the “Beverage/Soft Drink” Category. The controller system would then determine the ERS for each of the products. The product with the greatest ERS may be the appropriate substitute product.

At step 715, the controller retrieves information associated with the determined substitute product. For example, the controller may access information including a product description, product identifier, product graphic, etc.

At step 720, the controller displays the determined substitute product in proximity of products within the selected product category. In one embodiment, the substitute product is displayed in a constant or substantially constant portion of a web page, such as in a particular frame, always to the left of a requested product category, etc.

At step 725, the controller determines whether the customer has selected the substitute product for purchase. If so, then at step 730 the controller charges, or registers an entry to later charge, the manufacturer for the appropriate fee per display of product plus the fee per customer substitute of product. Then, the controller at step 745 updates the substitution success rate for the substitute product. The substitution success rate is typically calculated as the number of times the substitute product is displayed in a product category divided by the number of times the substitute product is purchased in a product category. Other calculations of success rate may be used as desired.

If at step 725 the controller determines that the customer has not selected the substitute product for purchase, then at step 735 the controller registers the substitute product as having not been selected. At step 740 the controller charges the manufacturer the appropriate fee per display of product, and at step 745 updates the substitution success rate for the substitute product.

Although the present invention has been described with respect to a preferred embodiment thereof, those skilled in the art will note that various substitutions may be made to those embodiments described herein without departing from the spirit and scope of the present invention.

For example, the controller may dynamically determine which products are substitutes for one another based on customer preferences, manufacturer input, retailer input, retail prices, historical purchases, and other criteria.

In another embodiment, the substitution slots may appear while the customer is checking out (e.g. after the customer has assembled their shopping cart.) After the customer has assembled their shopping cart, the customer may be presented with an opportunity to switch an “original product” (in the shopping cart) for a substitute product. The customer may optionally receive a benefit for switching to the substitute product. Further, the customer may receive an offer (e.g., during checkout) prompting him to switch in exchange for a benefit.

The controller may determine which substitute products to offer the customer at check-out based on, e.g., the expected revenue described above.